According to Figure 9

question 82

Multiple Choice

According to Figure 9.1,saving equals zero at an income level of

• A)$0.
• B)$1,000 billion.
• C)$2,000 billion.
• D)$500 billion.

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Definitions:

Marginal Utility

The additional satisfaction or utility received by consuming one more unit of a good or service.

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.

Chips

Thin slices of potatoes, vegetables, or other foods, fried or baked until crispy, commonly served as a snack or side dish.

Equal Marginal Principle

The principle stating that optimal allocation occurs when the marginal benefits from allocation of resources to different uses are equalized.